Last week, Brown released a $97.6 billion state spending plan for the upcoming fiscal year that projected a $1 billion reserve. Two months ago, Taylor had projected a more cautious outlook that forecast a $1.9 billion deficit.

Taylor said Monday that higher tax revenues, increased savings and repayment of loans account for the differences.

Brown's finance director, Ana Matosantos, said last week that the two offices use slightly different figures and spending estimates. For example, the governor's office has different information on how much money will be generated by the elimination of community redevelopment agencies and how to use newly approved tax revenue, she said.

Under Brown's spending plan, California's budget will increase by nearly $5 billion, largely due to voter approval of his sales and income tax initiative, Proposition 30. By comparison, the state's shortfall stood at $25 billion when Brown took office two years ago.

Despite the fresh tax revenue, Brown warned his Democratic colleagues who control both houses of the Legislature to refrain from overspending. He wants to build a reserve to cushion against future downturns and make strides toward paying down the state's bond obligations.

His plan for the fiscal year that begins July 1 includes $2.7 billion more for K-12 education and community colleges, bringing state and local spending to $56.2 billion.

The University of California and California State University systems each would receive an additional $250 million, which includes $125 million promised for not raising tuition this academic year. California Community Colleges, which has 112 campuses, would receive a $197 million boost.

Brown also projected modest increases in health care and social service programs.

The governor committed to making national health care reform work in California by expanding Medicaid coverage for low-income Californians. He set aside $350 million for the Medicaid expansion/

Lawmakers have until June 15 to send their own budget plan to the governor.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Analyst: Brown's budget is balanced

Newsmax Headlines

Should your town impose a 1-year moratorium on medical marijuana dispensaries?

ASHLAND, Ore. (AP) — One of Oregon's more liberal cities is considering a moratorium on medical marijuana dispensaries.

The Ashland Daily Tidings newspaper reports that the Oregon Health Authority Medical Marijuana Dispensary Program has already received six dispensary applications for Ashland.

But neighborhood opposition has been increasing and the council will discuss a moratorium on April 1.

People hoping to launch dispensaries in Oregon began submitting applications to the state on March 3 as part of a new medical marijuana regulatory system.

A proposed dispensary called Top Shelf Meds abuts an Ashland neighborhood.

Carol Kim says the dispensary is separated from her home by a hedge. She says it's ironic that state rules bar dispensaries near schools, but her daughters will come home from school and have to live near a dispensary.___

Copyright 2014 The Associated Press.

YESMy town should definitely impose the moratorium for one year -- no more, no less.

NOMy town should NOT impose the moratorium for any length of time. My town should follow current state laws on medical marijuana dispensaries.

UndecidedI am unsure whether I am in favor of medical marijuana dispensaries in my town, regardless of current state laws.

Business News

US home prices rise modestly, but affordability an obstacle

WASHINGTON (AP) -- U.S. home price increases continued to rise at a steady pace in January, as the housing market deals with affordability problems and few properties listed for sale.

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